CreditAccess Grameen Ltd Company Profile and Competitive Landscape

CreditAccess Grameen Ltd is a leading microfinance company in India, founded in 2008. It is a subsidiary of Skandinaviska Enskilda Banken AB (SEB) of Sweden.

The company operates in 22 states across India, serving over 3.5 million customers. Its mission is to provide financial services to the underserved population.

CreditAccess Grameen Ltd has a strong presence in the Indian microfinance market, with a diverse portfolio of products and services. Its customer base spans across rural and urban areas.

The company's business model is based on providing small loans to individuals and small businesses, with a focus on financial inclusion.

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CreditAccess Grameen's business strategy is built around microfinance, providing small loans to low-income individuals in India.

The company has a strong presence in rural India, with a network of over 1,800 branches across the country.

They cater to a vast customer base, with over 3.5 million active borrowers, mostly women.

Their business model focuses on providing financial services to the underserved population, promoting financial inclusion.

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CreditAccess Grameen's loan products are designed to meet the diverse needs of their customers, with loan amounts ranging from ₹5,000 to ₹1.5 lakh.

The company has a high repayment rate, with over 95% of customers repaying their loans on time.

This is a testament to the trust and confidence their customers have in the company's services.

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CreditAccess Grameen has developed a vast network of branches nationwide to cater to the diverse needs of its customers. This approach allows the company to employ local people in each village, fostering a greater relationship between the customer and the company.

A lack of internet connectivity is another issue that CreditAccess Grameen has had to overcome in India. The company has designed systems to process loan applications offline when connectivity is unstable, and then flush these into their core banking platform when access is back up.

CreditAccess Grameen's customer-centric innovation has been key to its success. The company understands that its rural customers' reality and needs are different from urban customers, and so they need a different approach.

The company's approach is to design products suitable for its customers' situations, rather than expecting them to adapt to its products. This has led to a plethora of products suiting everyone's individual needs, a far cry from the few products it initially offered.

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CreditAccess Grameen's financial performance has been a mixed bag over the years, with some periods of growth and others of decline.

The company's cash flows have been impacted by various factors, with a notable decline in cash from operating activity in 2016, 2017, and 2018, as well as in 2022 and 2023. In contrast, the company saw an increase in cash from operating activity in 2021.

Here's a breakdown of the company's cash flows over the years:

In terms of return on equity (ROE), CreditAccess Grameen has seen significant fluctuations over the years, with a high of 25% in 2024 and a low of 5% in 2021.

Let's take a closer look at the company's cash flows over the years.

The company's cash from operating activity has been steadily decreasing, from a negative $2,713 in March 2022 to a negative $3,290 in March 2023.

Cash from investing activity has also been mostly negative, with a few exceptions. In March 2015, the company had a positive $54 from investing activity.

The company's cash from financing activity has been increasing over the years, from $1,967 in March 2021 to $5,494 in March 2024.

Here's a breakdown of the company's net cash flow over the years:

Let's take a closer look at the financial ratios that have been impacting the company's performance over the years.

The Return on Equity (ROE) percentage has seen some fluctuations, dropping from 10% in both 2013 and 2014 to 5% in 2021, before increasing to 9% in 2022.

Here's a breakdown of the ROE percentage over the years:

The ROE percentage has been steadily increasing over the past two years, with a notable jump from 18% in 2023 to 25% in 2024.

CreditAccess Grameen's shareholding pattern shows a steady decline in promoter shareholding from 73.85% in Mar 2022 to 66.50% in Dec 2024. The number of shareholders has increased significantly, from 34,568 in Mar 2022 to 1,25,004 in Dec 2024.

FIIs have seen an increase in shareholding, from 8.24% in Mar 2022 to 11.65% in Mar 2024, before declining to 9.76% in Dec 2024. DIIs have also seen a significant increase, from 10.94% in Mar 2022 to 15.76% in Mar 2024, before declining to 14.17% in Dec 2024.

The company's major competitors, including Spandana Sphoorty, Fusion Finance, and Capri Global Capital, have a median market cap of ₹10,744 Crs, which is lower than CreditAccess Grameen's market cap of ₹14,689 Crs.

CreditAccess Grameen has some significant competitors in the market.

Spandana Sphoorty, Fusion Finance, and Capri Global Capital are among its major competitors.

The market cap of CreditAccess Grameen is ₹14,689 Crs, while the median market cap of its peers is ₹10,744 Crs.

This indicates that CreditAccess Grameen has a higher market capitalization compared to its competitors.

Here's a list of its major competitors:

The shareholding pattern of a company is a crucial aspect to understand its ownership structure. The data from the table shows that the promoters held a significant share of the company, with a peak of 80.19% in Mar 2019.

The number of shareholders has been increasing over the years, with a significant jump from 34,568 in Mar 2022 to 1,25,004 in Dec 2024. The promoters' share has been steadily decreasing, from 73.85% in Mar 2022 to 66.50% in Dec 2024.

Foreign Institutional Investors (FIIs) have also shown a fluctuating trend, with a peak of 12.00% in Sep 2023 and a dip to 9.76% in Dec 2024. Domestic Institutional Investors (DIIs) have been steadily increasing, from 10.94% in Mar 2022 to 14.17% in Dec 2024.

Here's a breakdown of the shareholding pattern:

The sudden changes in FII or DII shareholding can be attributed to the new XBRL format added from Sep'22 onwards, which provided more details and classifications such as banks and foreign portfolio investors.